A Pennsylvania Farm Bureau-supported bill that would give Pennsylvania farmers greater flexibility in paying state income taxes on crop insurance payments has passed its first test in the General Assembly.
The bill would allow farmers to defer crop insurance payments from state income taxes for one year, bringing state tax policy on crop insurance in line with federal rules. PFB believes the move would give farmers greater flexibility in paying taxes on crop insurance payments at the times when they need it the most. Because crop insurance payments are triggered at times of severe weather and significant crop loss, farmers receive such payments when the year did not go as planned. Greater flexibility for state income taxes would help farmers manage income and expenses in difficult years.